Luxury goods and services have entered an increasing number of markets through the last few years as a result of developing and emerging economies, growth in consumer spending, and a higher demand for luxury products. One of the most indicative industries that showcase the growth of luxury in a country or region is the automotive sector. In the UAE, for instance, the peak of premium luxury is evident with luxury cars visible at every turn in cities such as Dubai and Abu Dhabi.
Luxury car rentals in Dubai have picked up significantly through the last 4-5 years, and now, have become established as a prominent industry in the city. The Middle East has the highest per capita spending on luxury vehicles than any other region in the world. This is also why setting up a business in selling luxury products or goods is quite a trend now. There are quite a few advantages of setting up a luxury company in Dubai.
Luxury products are exclusive
It is a well-known fact that luxury products are destined for high-net-worth and ultra-high-net-worth individuals. Whether it is high-value jewelry, houses and/or apartments, and even cars, they help those who can afford them stand out. Companies that sell such exclusive goods or the services will, therefore, will have an exclusive clientele. Furthermore, apart from UAE nationals and affluent expats, even tourists who come to Dubai can rent Ferraris during their vacation. Selling products of such brands can also by association and brand recall increase the number of clients who merely want souvenirs of a particular luxury car manufacturer.
Less products, better profits
Companies that engage in the luxury industry are niche and tend to focus on quality over quantity. Luxury strategies often focus on a polished brand image, retaining a high-end customer base, sustaining brand value and emphasizing quality and exclusivity. With the right modes of communication with their consumers and high-quality products, luxury brands can safely step out of the race for maximizing sales and focus on what it takes to keep their customers satisfied.
The Middle East and Asia are two parts of the world where luxury feels at home. Dubai is not only a crucial luxury hub in the region but is also among the top luxury destinations in the world. Similarly, Singapore has made its mark with revenues in the luxury goods market growing to $4.3 billion in 2019. Now, foreign entrepreneurs who want to set up companies and sell luxury goods and services can even register limited liability companies in Singapore, which is one of the wealthiest cities in the world.
Luxury brands can be promoted easily
Marketing and advertising are some of the most important aspects of a business, which usually take up a lot of a company’s budget. However, in the luxury segment, brand heritage and brand recall make the process a lot more affordable. Furthermore, companies can also be created as franchises in Dubai with shared resources and lower monetary requirements for promotion.
Selling luxury goods or products in Dubai will, without a doubt, require a significant investment, however, the rewards are equally significant and, obviously, quantifiable in profits. The Middle East has an increasingly large young population and the willingness among millennials to invest in luxury is also very high. The 2019 State of the Luxury Industry report points to 29 percent of consumers who bought luxury goods in 2018 are likely to spend more on similar purchases in 2019. The Global Powers of Luxury Goods 2018 report also proves that the UAE is a strategic destination for luxury and premium luxury brands looking to enter the market. Those who want to start such companies will not have to go out of their way, as Dubai offers the optimum environment for opening such businesses.